Inspenet, June 15, 2023.
After a surge in 2020, the price of lithium has plummeted in 2023. Here we tell you why.
The fall in the price of lithium in 2023: What has led to this resounding decline?
After a stratospheric rise in 2020, the price of lithium has plummeted in 2023. Prices have plunged from the all-time highs reached in mid-November 2022 of RMB 597,500 per tonne to RMB 319,500 per tonne in the week ending March 17, a nearly 47% drop that has sent prices back to levels last seen in January 2022.
These data on the fall in the price of lithium stand out in a report from International Banker which indicates, in addition to the reasons why this phenomenon is occurring in the world lithium market, despite the initiatives of several companies to develop more efficient technology for lithium extraction (EDL).
China: one of the countries most affected by the drop in lithium prices
The Asian country is undoubtedly one of the most affected by the drop in the prices of “white gold”. Let’s see why:
Little demand for electric cars: China dominated the market for electric vehicles and lithium-ion batteries. One reason that drove this growth was the government subsidy to this industry, so that the inhabitants agreed to buy it. This program is no longer available and is one of the reasons why the Asian country is greatly affected by the fall in lithium prices.
And it is that, in general, sales of electric cars have fallen. According to a study by Rystad Energy, only 672,000 units were sold in January 2023, almost half of December 2022 sales.
Will lithium prices continue to decline? Experts have positive perspectives in this regard and ensure that in the coming years this industry will have annual revenues of up to 10,000 million dollars per year.
Source: https://cincodias.elpais.com/economia/2023-04-21/el-precio-del-litio-se-hunde-casi-un-50-tras-la-fiebre-de-2022-la- storm-that-whips-the-key-element-of-batteries.html
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